Will rising costs at technology and growth stocks pressure Nasdaq 100 index? Support test ahead

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Nasdaq 100 drops 1.77% to 28,511

Highlights

Nasdaq 100 faces mounting profitability challenges and rising costs, pressuring earnings expectations for major technology constituents.
Investor sentiment remains cautious as operational efficiency and expense management concerns drive mixed index performance near-term.
Technicals show pronounced short- and medium-term bearish momentum, with expected price range of 28,312–28,710 and low probability of rebound.

Earnings headwinds pressure sentiment as tech costs rise

The current mood in the Nasdaq 100 is shaped by mounting profitability concerns and rising costs affecting several of its major technology and growth constituents, according to Finance Yahoo. These pressures are expected to weigh on near-term earnings outlooks, influencing investor sentiment toward the broader index. As member companies face headwinds related to operational efficiency and expense management, the index is experiencing mixed performance against this backdrop.

Seller dominance confirmed by bearish momentum and oversold readings

Technically, NDX/USD faces immediate resistance at the Ichimoku Kijun level of 29,005, while short- and medium-term moving averages sit at 29,271 (MA-20) and 29,467 (MA-50), with the long-term MA-200 positioned at 26,316. Intraday indicators are bearish: Momentum remains negative on both the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX), the Relative Strength Index (RSI) stands at a deeply oversold 26.16, while both the Commodity Channel Index (CCI) and Bull/Bear Power are in sell territory. The Stochastic RSI and Awesome Oscillator also support the prevailing downtrend, with no divergence present among oscillators, confirming dominant seller momentum.

Downside risk prevails as rebound prospects dim in short term

Over the next two to three trading days, NDX/USD is expected to hold within a volatility band of 28,312 to 28,710. The likelihood of a rebound remains quite low, with downside risk dominating; price movement is most likely to remain sideways within this range unless a clear breakout occurs. A sustained bullish move would require a close above the 29,005 resistance level, while a break below 28,312 would suggest further weakness in the short term.

Viktoras Karapetjanc, expert at Traders Union, sees the Nasdaq 100 under pressure from both technical and fundamental angles. He notes that rising costs and profitability worries are weighing on major index constituents, creating a cautious mood in the market. Short- and medium-term indicators point to persistent seller momentum, despite longer-term support still holding. The analyst believes that upside potential will only emerge if the index firmly breaks above 29,005. "For now, I remain constructive but selective — a clear close over resistance is needed to signal a turnaround in sentiment."

Earlier, analysts noted that the Nasdaq 100 remained under short- and medium-term selling pressure, despite a generally bullish long-term outlook. The current focus on profitability challenges and elevated costs across key constituents further intensifies downside risk, making a close watch on any breach of the 28,312 support level crucial in the coming sessions.

Source of Data: NDX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.